2008 Proposed Rule for Medicare Physician Fee Schedule

In July, CMS published the 2008 Proposed Rule for the Medicare Physician Fee Schedule reflecting a -9.9% negative update in the Conversion Factor, which would result in a value of $34.15 versus the $37.90 that has been in place for the last three years.  One of the surprises was that anesthesia received a 14% increase in relative value primarily due to a reevaluation of work RVUs.  Because of the budget neutrality requirements of the RVUs, this results in decreases in the RVUs for most of the other service areas paid thru the Conversion Factor.  Thus, most specialties will see a decrease in per unit reimbursement of greater than 10% unless Congress acts yet again to eliminate the cut.